Myth: Assessed value generally will be equal to market value.
Reality: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always.
Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby houses are excellent examples of why the price can vary.
Myth: The appraised value of a home will be different depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, despite of for whom the appraisal is conducted.
Myth: Market value will equal replacement cost.
Reality: Market value is derived from what a willing buyer would likely pay a willing seller for a specific house, with neither being under pressure to buy or sell.
Replacement value is the dollar amount needed to reconstruct a house in-kind.
Myth: Appraisers use a formula, like a certain price per square foot, to arrive at the value of a property.
Reality: An appraisal report is an amalgamation of information based on the home's size, location, proximity to specific facilities, the condition of the house and the values of recent comparable sales. You can depend on Belles Appraisal Service, LLC's staff to be ethical in assessing this data.
Myth: In a powerful economy - when the prices of properties in a given region are reported to be appreciating by a certain percentage - the values of individual properties in the area can be expected to appreciate by that same percentage.
Reality: All increase of value is on an individual basis, concluded by information on relevant considerations and the data of comparable homes.
This is true in good economic times as well as poor.
Myth: The home's exterior is determinate of the expected price of the house; it is unnecessary to do an interior inspection.
Reality: Home value is determined by a multitude of factors, including location, condition, improvements, amenities, and market trends.
As you can see, none of these variables can be derived simply by inspecting the house from the outside.
Myth: Since you're the one coughing up the cash for the appraisal when applying for your loan to buy or refinance your house, you own the provided appraisal.
Reality: The report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the report.
Home buyers must be supplied with a version of the document through request due to the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal document so long as it meets the requirements of their lending company.
Reality: It is very important for consumers to check over a copy of their report so that they can verify the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a great deal of information stored in an appraisal report that could be useful to the home buyer in the future, such as the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the region.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a home during a sales transaction involving a lending agency.
Reality: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is the same as a home inspection.
Reality: A home inspection report serves a completely different purpose than an appraisal.
The purpose of the appraiser is to form an opinion of value in the appraisal process and through writing the report.
House inspectors will produce a report that will show the condition of the house and its major components and possible damage.
